Rehmann is an independent member of Nexia International.
To the Board of Commissioners of the County of Monroe, Michigan Monroe, Michigan
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
We have audited the financial statements of the governmental activities, the business‐type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Monroe, Michigan (the "County") as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements. We issued our report thereon dated June 30, 2021, which contained unmodified opinions on those financial statements. Our report includes a reference to other auditors. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2020
CFDA Passed Pass‐through / Federal
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2020
CFDA Passed Pass‐through / Federal
" " " Federal Agency / Cluster / Program Title " Number " Through " Grantor Number " Expenditures U.S. Department of Labor (concluded) RESA ‐ 2019/2020 17.258 MSF/SEMCA 13‐02‐0004 $ 21,295 IET ‐ 2019/2020 17.258 MSF/SEMCA 13‐02‐0004 24,019 WIOA Dislocated Formula Grants: 2019/2020 17.278 MSF/SEMCA 13‐02‐0004 70,734 2020/2021 17.278 MSF/SEMCA 13‐02‐0004 51,829 122,563 Total WIOA Cluster 232,751 Total U.S Department of Labor 593,515 U.S. Department of Transportation Highway Planning and Construction Cluster ‐
Trail Loop 20.205 MSF/SEMCOG N/A 26,192
Highway Safety Cluster: Safe Communities Grant 20.600 MOHSP PT‐20‐33 12,225 Safe Communities Grant 20.600 MOHSP PT‐21‐33 6,621 18,846 Total U.S. Department of Transportation 45,038 U.S. Department of Treasury Coronavirus Relief Fund: CRF Contact Tracing: 2019/2020 21.019 MOHSP N/A 203,538 2020/2021 21.019 MOHSP N/A 117,982 CRF Testing 21.019 MOHSP N/A 140,316 Covid IMMS 21.019 MOHSP N/A 47,446 Coronavirus Relief Local Government Grant 21.019 MDT N/A 1,180,899 Public Safety/Public Health Payroll Reimbursement 21.019 MDT N/A 2,614,648 First Responder Hazard Pay Premiums Program 21.019 MDT N/A 161,000
Total U.S. Department of Treasury 4,465,829
U.S. Environmental Protection Agency
Beach Monitoring and Notification Program Implementation Grants 66.472 MDEQ N/A 5,000
Drinking Water State Revolving Fund Cluster:
Capitalization Grants for Drinking Water State Revolving Funds
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2020
CFDA Passed Pass‐through / Federal
Schedule of Expenditures of Federal Awards
For the Year Ended December 31, 2020
CFDA Passed Pass‐through / Federal
COUNTY OF MONROE, MICHIGAN
Notes to Schedule of Expenditures of Federal Awards
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES2. 10% DE MINIMIS COST RATE
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the County of Monroe, Michigan (the “County”) under programs of the federal government for the year ended December 31, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and other applicable guidance. Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County.
The County’s reporting entity is defined in Note 1 of the County’s basic financial statements. The County’s financial statements include the operations of the Monroe County Road Commission discretely presented component unit, which received federal awards that are not included in the Schedule for the year ended December 31, 2020, as these entities were separately audited.
For purposes of charging indirect costs to federal awards, the County has not elected to use the de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
COUNTY OF MONROE, MICHIGAN
Notes to Schedule of Expenditures of Federal Awards
3. PASS‐THROUGH AGENCIES Pass‐through Agency Abbreviation MC Macomb County MDE Michigan Department of Education MDEQ Michigan Department of Environmental Quality MDHHS Michigan Department of Health and Human Services MDNR Michigan Department of Natural Resources MDT Michigan Department of Treasury MEDC Michigan Economic Development Corporation MOHSP Michigan Office of Highway Safety Planning MSF Michigan Strategic Fund MSP Michigan State Police SEMCA Southeast Michigan Community Alliance SEMCOG Southeast Michigan Council of Governments The County receives certain federal grants as subawards from non‐federal entities. Pass‐through entity identifying numbers are presented where available. Pass‐through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows:
Rehmann is an independent member of Nexia International. To the Board of Commissioners of the County of Monroe, Michigan Monroe, Michigan AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS June 30, 2021
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business‐type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Monroe, Michigan (the "County"), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements, and have issued our report thereon dated June 30, 2021. Our report includes a reference to other auditors who audited the financial statements of the Monroe County Road Commission, Monroe County Library System, and Monroe County Employees' Retirement System, as described in our report on the County’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. The financial statements of the Monroe County Library were not audited in accordance with Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control.
section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control over financial reporting, described in the accompanying schedule of findings and questioned costs as item 2020‐001 that we consider to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Monroe County’s Response to Findings
The County’s response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The County’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Rehmann is an independent member of Nexia International.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Independent Auditors’ Responsibility
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Internal Control Over Compliance
Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe that a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Purpose of this Report
program. However, our audit does not provide a legal determination of the County’s compliance. Opinion on the Major Federal Program
COUNTY OF MONROE, MICHIGAN
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2020
SECTION I ‐ SUMMARY OF AUDITORS’ RESULTS Financial Statements yes X no X yes no yes X no Federal Awards yes X no yes X none reported yes X noCFDA Number Name of Federal Program or Cluster Type of report
COUNTY OF MONROE, MICHIGAN
Schedule of Findings and Questioned Costs
For the Year Ended December 31, 2020
SECTION II – FINANCIAL STATEMENT FINDINGS
2020‐001 – Employment and Training and Homeland Security Grant Accounting (Repeat) Finding Type. Significant Deficiency in Internal Control over Financial Reporting.
Recommendation. We recommend the County implement procedures to properly reconcile their grants so revenues recorded equal the corresponding grant expenditures.
View of Responsible Officials. Due to the amount of time it takes to receive reimbursement for UASI grants, sometimes nine months after year end, it was decided during a prior year audit that we would record revenue in the year that it is received and not reconcile revenue to expenses. Since these grants normally span over three years, we monitor expenditures and revenues in our Finance system to ensure that we do not go over the program allotted budget and to verify that revenue has been collected for the entire grant.
Criteria. Management is responsible for reconciling the general ledger for reimbursement‐driven grants as revenues recorded should not exceed the corresponding grant expenditures.
Condition. During our audit, we noted that the County is not reconciling the general ledger to ensure grant revenues do not exceed the related expenditures. The County has made some progress in its accounting and year‐end closeout of certain reimbursement‐driven grants (including employment and training and homeland security grants), but further work is needed. That is, for grants of this type, the revenues and expenditures (in the respective funds and/or business units) should zero out (meaning they are equal) and appropriate receivables, deferrals and transfers are recorded as part of the closeout and audit preparation process.
Cause. The County does not have a policy to reconcile the general ledgers for these grants in a timely manner.
COUNTY OF MONROE, MICHIGAN
Summary Schedule of Prior Audit Findings
For the Year Ended December 31, 2020
Finding 2019‐001 – Drain Commission Accounting Records Finding 2019‐002 – Restitution Payable Finding 2019‐003 – Employment and Training and Homeland Security Grant Accounting Finding 2019‐004 – Review of Data Provided for OPEB Actuarial Valuation Drain Commission management is responsible for maintaining its subsidiary accounting records and reconciling those records to the County's general ledger. The County provided a subsidiary transaction detail from the Drain Commission's accounting system that was separate from the general ledger kept for the County as whole. The provided detail did not agree to the County's general ledger (control accounts) and there was no reconciliation available to determine the difference. This finding has been adequately resolved in the current year.
The County used an agency fund to account for court restitution held on behalf of outside parties. Accordingly, the County was required to keep accurate subsidiary records of the amounts held in these liability accounts. These accounts should be analyzed and reconciled on a regular basis (e.g. monthly or quarterly). We requested detail for the restitution payable accounts in the County’s agency fund. The County was able to provide reconciliations to the general ledger for the changes in these accounts, however, they were unable to provide a detail of what comprises the ending balance. This finding has been adequately resolved in current year.
Management is responsible for reconciling the general ledger for reimbursement‐driven grants as revenues recorded should not exceed the corresponding grant expenditures. During our audit, we noted that the County is not reconciling the general ledger to ensure grant revenues do not exceed the related expenditures. The County has made some progress in its accounting and year‐end closeout of certain reimbursement‐driven grants (including employment and training and homeland security grants), but further work is needed. That is, for grants of this type, the revenues and expenditures (in the respective funds and/or business units) should zero out (meaning they are equal) and appropriate receivables, deferrals and transfers are recorded as part of the closeout and audit preparation process. This finding has been repeated as item 2020‐001.
M
ONROE
C
OUNTY
F
INANCE
D
EPARTMENT
125 East Second Street Monroe, Michigan 48161-2110 Telephone: (734) 240-7250 Fax (734) 240-7266
CORRECTIVE ACTION PLAN
Pursuant to federal regulations, Uniform Administrative Requirements Section 200.511, the following are the findings as noted in the County of Monroe, Michigan’s Single Audit report for the year ended December 31, 2020, and corrective actions to be completed.
Finding: 2020-001 – Employment and Training and Homeland Security Grant Accounting (Repeat) Auditor Description of Condition and Effect: Management is responsible for reconciling the general
ledger for reimbursement-driven grants as revenues recorded should not exceed the corresponding grant expenditures. During our audit, we noted that the County is not reconciling the general ledger to ensure grant revenues do not exceed the related expenditures. The County has made some progress in its accounting and year-end closeout of certain reimbursement-driven grants (including employment and training and homeland security grants), but further work is needed. That is, for grants of this type, the revenues and expenditures (in the respective funds and/or business units) should zero out (meaning they are equal) and appropriate receivables, deferrals and transfers are recorded as part of the closeout and audit preparation process.
Auditor Recommendation: We recommend the County implement procedures to properly reconcile
their grants so revenues recorded equal the corresponding grant expenditures.
Corrective Action: The County will record revenues equal to the corresponding grant expenditures for
reimbursement-driven grants.
